Extension or Misdirection?

The green path allows for extension of the (c)/"c" toward 2630+ (5min).

It needs to turn up sharply right here or risks failure, SPX's pattern really should have seen it set to open ~2609 if it was getting this extension...

A break of 2575 followed by 2562 (ES) will be the first indications of a "local top".

IF we do get the extension, while technically still valid as a ivth of an ED C wave it will be more likely the A of (B) (blue) at that point. However it is possible that it is b of Y of (A) and still drops to a nominal new low and then restarts the (B) wave, there is also a risk that it is ALL of (B).

In any case I do not see the larger P.4 complete. Capital preservation is key. I see a decent pullback ~5% at a minimum here, and I also see potential risk of some more "sudden" drops.

@ES# - Micro Counts - Jan-11 0847 AM (5 min)
@ES# - Micro Counts - Jan-11 0847 AM (5 min)
@ES# - Primary Analysis - Jan-11 0852 AM (2 hour)
@ES# - Primary Analysis - Jan-11 0852 AM (2 hour)
SPX.XO - Primary Analysis - Jan-11 0856 AM (4 hour)
SPX.XO - Primary Analysis - Jan-11 0856 AM (4 hour)
SPX.XO - BIG Macro - Jan-11 0859 AM (1 day)
SPX.XO - BIG Macro - Jan-11 0859 AM (1 day)
Zac Mannes is a senior analyst at ElliottWaveTrader.net and co-host of the site's Stock Waves service, which provides wave alerts and trade set-ups on individual stocks.